Montagu seeking £300m for Survitec
NORTH West private equity firm Montagu is aiming to double its money with the £300m sale of defence equipment group Survitec.
Montagu has appointed the Manchester office of NM Rothschild to handle the sale. Rothschild recently advised on Inflexion’s hugely successful sale of Viking Moorings to HSBC Private Equity.
Although headquartered in Northern Ireland, Survitec, which makes inflatable life-saving equipment for the defence, marine and aerospace sectors, has a manufacturing site and registered office in Birkenhead, Merseyside.
If the £300m price is achieved it will be one of the biggest British private equity exits of 2009.
The Manchester office of Montagu, led by Simon Pooler bought Survitec for £146m and has invested heavily to expand into international markets. Most recently it has led a reorganisation of the manufacturing base, which has seen production shifted from Europe to China and Sri Lanka.
Rothschild was appointed originally last year to conduct a strategic review of Survitec, which makes also anti-pressure G-Suits for helicopter and fighter pilots, safety equipment for Eurofighter aircraft and tents for the Red Cross.
It is understood that Rothschild received a number of inquiries, from trade and financial suitors, and Montagu has now asked the bank to start a formal sale process.
A source close to the deal told TheBusinessDesk: “Survitec has performed really well over the last two years – turnover has increased from £93m to more than £150m.
“Montagu know this is a great business and will hold out for the right price and will withdraw it from sale if it’s not forthcoming.”
It is understood a deal could be agreed before Christmas.
